Americans have an immense fondness for daily fantasy sports betting, as is seen by the increasing numbers of people who take part in it. However, there is no clear cut law to govern this activity, and this has left the gambling industry in the United States in a state of confusion. The two companies that offer DFS betting in the United States, FanDuel and DraftKings,, have benefited very much from the surge of interest in this activity. However, these companies are now hard pressed to retain the advantages that they have made so far because of the legal grey area that the DFS industry now occupies. In fact, lawmakers in different states are debating this issue because of the size of the industry and the amount of money it has the capacity to mobilize.
Texas Attorney General Ken Paxton’s ruling against FanDuel has come as a major problem for the company which has been in business in the state since 2009. As a matter of fact, fantasy sports originated in the Lone Star state more than four decades ago and it has become an extremely popular activity there. However, FanDuel has withdrawn its services in the state based upon the ruling of the Attorney General even though it does not agree with his opinion since it is committed to following the law.
The leading DFS betting operators are preparing to meet with gaming authorities in Nevada in order to clarify certain issues regarding this industry. The Nevada Gaming Policy Committee does have rules that govern the gaming industry, but Governor Brian Sandoval also pointed out that the policies are not yet updated to reflect the realities of industry as it stands at present. The meeting might bring about much needed clarity that will benefit the operators, the state, and also individual customers.
Virginia, on the other hand, has surged ahead of other states when it comes to the issue of DFS gambling by becoming the first state to legalize the business within its borders. The far-sighted ‘Fantasy Contests Act’ was signed into law by Virginia Governor Terry McAuliffe in order to permit residents of the state to take part in daily fantasy sports contests. Fantasy sports operators will now be required to register with the state of Virginia after paying a licensing fee of $50,000 towards oversight costs. Furthermore, there will be controls over DFS operators to ensure that their businesses are managed according to the law.
The companies operating DFS contests in Virginia will have to enforce age verification to prevent underage gambling. These companies are also prevented from giving out confidential information about their customers. Furthermore, operators are required to keep player funds separate from their own operational funds. All employees of these companies, along with their family members, will be prevented from taking part in any contests on a DFS website involving real money. Finally, these companies will also have to face two separate and independent audits every year in order to check whether regulations are being followed.